Investing.com – The dollar opened the week steady well above the 91 mark, but slipped from Friday’s high as the U.S. 10-year treasury yield pulled back to below the 3% level.
The U.S. dollar index that tracks the greenback against a basket of six major currencies last stood at 91.36, up 0.05% at 10:36PM ET (02:36 GMT). It slipped from Friday’s high of 91.71, the strongest level since January 11.
The U.S. 10-year treasury yield slipped from last week’s high of 3.033% to 2.959%, which weighed down the dollar’s momentum to test the 92 level. This week the U.S. will see Events Federal Reserve’s May 1-2 policy meeting and jobs data due on Friday.
The USD/JPY pair gained 0.07% to 109.13. Following the historic inter-Korean summit on Friday at which leaders from North and South Korea pledged peace, geopolitical tensions in East Asia eased, weighing on demand for the safe-haven yen. The dollar is expected to consolidate against the yen.
The AUD/USD pair was down 0.21% to trade at 0.7565. Earlier Monday morning, the Aussie picked up on China’s better than expected PMI data. China’s manufacturing PMI for April came in at 51.4, beating the estimated 51.3, while its non-manufacturing PMI came in at 54.8, better than the expected 54.6. China is Australia’s largest trading partner, and bullish data released by China could send the sentiment-linked Aussie higher, and vice versa.
Meanwhile, the Reserve Bank of Australia, which is set to speak on Tuesday on its interest rate in May, is expected to keep its interest rate well into 2019. Its U.S. counterpart Federal Reserve, on the other hand, is looking to accelerate the rate hikes. The dovish Australian bank and the hawkish Fed are expected to pull the pair further down.
In South Korea, the peace talk between North and South Korea on Friday boosted the won. The USD/KRW pair dropped 0.07% to a one-week low at 1,067.14.
Elsewhere, the USD/CNY pair eased 0.01% to trade at 6.3334.